I concur with this perspective.
Any Ostriches out there - WAKE UP!!
HREU students and future students…please (PLEASE) read this post and watch this video…
Warning: The second half of 2010 is going to be tough…Leading to a housing double dip. We anticipate a significant increase in foreclosures and continued property value loss. Don’t be surprised if homes in most major markets depreciate another 15-20% in 2010.
DON’T Panic. Read this post now. We want you to know what to expect next…and we will tell you exactly what to do now.
….Be prepared for what is coming next…take actions today (NOW) so that you will be ready. Operate as if you knew for sure that everything was going to be ‘worse’. Be over-prepared.
Here is exactly why the second half of 2010 is going to be worse than perhaps anything we have experienced so far: (housing related)
1. The Treasury Department has made it clear that the purchasing of Mortgage Backed Securities (MBS’s) will come to an end in the spring. Mortgage interest rates will increase.
2. Fannie and Freddies lending standards have increased significantly. Read last weeks post.
3) Fannie and Freddies continued existence is now in question. Last week Barney Frank more or less said that Fannie and Freddie need to be closed….that they have failed. What comes next…no one knows. What will result?…higher mortgage interest rates. Read story here.
4. Lack of financing for non-Fannie/ Freddie borrowers. There is a glut of non-FHA qualifying homes for sale…so-called luxury homes…and those homes will depreciate significantly as would be buyers can’t secure a loan. Add to this retiring and downsizing baby-boomers.
5. Loan modifications that don’t offer principal mortgage balance reductions are failing. In other words, if someone has a lower payment..and is still upside down in their home…chances are they will allow the home to default.(Again)
6. Unemployment. This is a wild card. If unemployment rates continue to increase or more importantly don’t decrease…this summer…expect to see vastly fewer buyers. Folks won’t feel confident buying a new home if they are even remotely fearful of losing their jobs. Bottom line, ‘consumers’ won’t consume if they are worried about money.
7. Inability for upside down homeowners to re-fi. As mortgage resets kick in (starting in massive numbers this summer) and homeowners simply can’t re-fi…and they know their homes have lost value…we know what they will do, don’t we. They will either do the smart thing and sell the home via a short sale or they will let the home go back to the lender…which will lead to another foreclosure.
8. Lenders taking their REO inventory out of the ’shadows’ and dumping the homes on the market. Agents, this IS HAPPENING NOW. More info on this subject here.
9. Commercial Defaults. YES, they are coming. What do we know? We know that commercial borrowers have usually no emotional ties to their commercial ‘investments’. Once a commercial unit no longer makes financial sense the borrowers default. Vacancy rates, resetting mortgages, falling rental rates…surge in commercial foreclosures.
10. Expiration of the (surprisingly) effective home buyer tax credit. Agents, the increase in housing sales late last year is now being attributed to the tax credit. As you know they credit was extended…through April of this year. If that credit isn’t extended…housing will hit a wall.
OK, scary stuff…right?
For agents who aren’t prepared for what will happen mid-2010…this year may very well be their last year in the industry.
Who will be the survivors (and thrive-ers) in this market? You already know the answer, don’t you? Agents who are listing and selling short sales…and agents who have become REO listing agents. We have made it very easy for you..
1) Become a REO Listing Agent. Watch the FREE Agent REO Secrets video and grab your FREE Agent REO Secrets book. We will now show you exactly what you can do now to become a REO listing agent. We will also show you how to make money now from doing BPOs. Watch the FREE Video Now, Grab Your FREE How-To List REOs book NOW.
Next, learn the NEW 2010 ways to list and sell short sales.
2) Earn your HREU CDPD. In case you missed it, late last year the Treasury department hit the hard reset on short sales. Now, starting in April, most major lenders are adopting the new guidelines. Bottom line, the streamlined short sale. Watch the FREE Short Sale Secrets Video Now and Download The FREE Short Sale Book.
Here is the CNBC Video:
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If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony Marriott - Chief Executive Officer - Haven Express @ Keller Williams Arizona Realty
Suzanne Marriott - Chief Learning Officer - Haven Express @ Keller Williams Arizona Realty